What information do I need before I contact you?

It’s helpful to gather some key information before contacting us. You should have a clear overview of your financial situation and a list of all your debts, such as credit cards, loans, and any outstanding bills. You should also include the amounts owed, interest rates, and payment due dates. 

It’s also important to know your monthly income and expenses, including essentials like rent or mortgage payments, utilities, and living costs. Having this information to hand will help our advisors provide you with the most accurate advice and recommend the best debt solution for your situation. 

Should I halt payments towards my debts?

It’s generally not advisable to halt payments on your debts before taking out a debt solution. You should carry on making payments, even if they are reduced, as this demonstrates your willingness to repay your debts and can prevent further damage to your credit score. If you stop making payments without a plan in place, this can lead to increased interest, fees, and potential legal action from creditors.

What are the implications if I decide to settle my debts early?

Settling your debts early can save you money on interest and help you clear your debt sooner, potentially improving your credit score. However, doing so may incur early settlement fees and affect the terms of any existing debt agreements, such as adjustments to interest rates or the total amount payable.

Before making a decision, it’s important to weigh up these factors and perhaps consult a debt advisor to get advice tailored to your specific situation. 

What if I don’t know who I owe money to?

If you’re unsure of who you owe money to, there are steps you can take to identify your creditors. Start by checking your credit report, which should include a list of most of your debts and the companies you owe money to. You can get a free credit report from any credit reference agency including Experian, Equifax, and TransUnion. 

Additionally, look at any past financial statements, bills, or letters you’ve received, as these may contain information about outstanding debts. If you’re still unsure, our expert debt advisors can help you track down your creditors and develop a plan to manage your debts.

Is it typical to be contacted by creditors?

Yes, it’s typical to be contacted by creditors if you owe money. Creditors may reach out to remind you of any missed payments, discuss your account, or offer repayment arrangements. If you’re on a Debt Management Plan (DMP) or Individual Voluntary Arrangement (IVA), your creditors usually communicate with the company managing your plan instead of directly with you, as they are legally required to follow specific protocols.

However, you may still hear from them, particularly if there are changes to your account or if the creditor hasn’t yet been informed of your arrangement.

If you’re receiving frequent or harassing calls from creditors, make your debt advisor aware. They can help manage these communications and ensure that you’re being treated fairly.

What happens if I get an increase in income?

If you have a Debt Relief Order (DRO), Individual Voluntary Arrangement (IVA), or Debt Management Plan (DMP) and your income increases, it’s important to report this change. For example, if you’re in an IVA, any increase in income typically requires you to pay more into your arrangement. This is because IVAs are based on your ability to pay, so your payments might be adjusted to reflect your improved financial situation.

Why is an annual review necessary?

An annual review of your Debt Management Plan (DMP) is necessary because it ensures that the plan continues to be the best solution for your current financial situation. It’s a regulatory requirement, and without your cooperation in completing the review, your plan could be cancelled potentially leaving you to manage your debts on your own.

This might result in creditors potentially reinstating interest, charges, and collection activities. Completing this review helps us protect your interests and keep you on track towards resolving your debt effectively.

What support is available if I’m feeling anxious or stressed about my finances?

If you’re feeling anxious or stressed about your finances, the Breathing Space scheme can help provide relief. Introduced in 2021, this Government initiative offers a 60-day period of legal protection from most creditor actions, interest, and fees, giving you time to stabilise your situation or plan for long-term debt management.

There are two types of Breathing Space: a standard version available to most individuals and a Mental Health Crisis Breathing Space for those undergoing treatment for a mental health crisis, which offers extended protection. Our experts can help you determine which option is right for you and guide you through the application process.

What services do you offer?

MoneyPlus offers a range of services designed to help individuals manage and overcome debt including:

Debt Management Plans (DMPs): Through a DMP, we help you create a plan to repay your debts at an affordable rate, negotiating with creditors on your behalf.

Individual Voluntary Arrangements (IVAs): An IVA is a legally binding agreement to pay off a portion of your debts over a set period, with the remaining debt potentially being written off at the end.

Breathing Space: Assistance with applying for Breathing Space, providing temporary relief from creditor actions while you organise your finances.

Debt Relief Orders (DROs): For individuals with low income and minimal assets, we can help you apply for a DRO, which may write off your debts after a year.

Bankruptcy Support: Guidance through the Bankruptcy process, helping you understand the implications and supporting you with the necessary paperwork.

Financial Education: Resources and advice to help you manage your finances better and avoid future debt issues.

For more information about MoneyPlus, visit our About Us page.

How can I deal with debt collection agencies?

When you contact MoneyPlus, we will assess your financial situation and clearly explain your rights under various debt solutions to find out what solutions are right for you and guide you through the process. If you enter a solution with us, we can negotiate with debt collection agencies on your behalf to find a manageable repayment plan, reducing the pressure on you.

Additionally, if you are eligible, we can help you apply for solutions like Breathing Space, which legally halts most creditor actions for a period, giving you the time and space to regain control of your finances.

What should I do if I’m not ready to speak about my debts?

If you’re not ready to speak about your debts, it’s important to remember that you’re not alone, and it’s okay to take your time. Dealing with debt can be overwhelming, and reaching out for help is a big step. When you feel ready, reach out to us for support.

We’re here to help and will take the time to listen and understand. In the meantime, it might be worth writing down your concerns or making a list of your debts to help you get organised. Taking steps at your own pace is still progress. 

What are the first steps I should take if I think I might be in debt trouble?

If you think you might be in debt trouble, start by assessing your financial situation. Make a list of all your debts, including amounts owed, interest rates, payment due dates, and whether they are secure or unsecured. Next, review your income and expenses to understand your cash flow and identify areas where you can cut costs.

It’s also important you avoid taking on more debt during this time. Once you have a clear picture of your finances, reach out to a trusted debt advice service like MoneyPlus. Our specialists can help you explore your options, provide personalised advice, and develop a plan tailored to your specific needs to manage your debts effectively. 

What options are available if I’m struggling to pay my bills?

If you’re struggling to pay your bills, several options are available to help you manage your finances. First, reach out to your creditors to explain your situation – they may offer temporary relief, such as reduced payments or a payment holiday. You can also seek advice from a debt advice company like MoneyPlus, which can help you explore options like a Debt Management Plan, Breathing Space, or a Debt Relief Order, depending on your circumstances. 

Additionally, check if you’re eligible for Government support, such as Universal Credit, or other benefits that can help you cover essential costs. Eligibility criteria applies, so ensure you review these carefully. Prioritise your most critical bills, like rent, mortgage, and utilities, and consider creating a budget to better manage your expenses.

How can I improve my credit score if it’s been impacted by debt?

To improve your credit score after debt, start by checking your credit report for errors and ensure all bills are paid on time. Focus on reducing your debt balances to lower your credit utilisation and avoid applying for new credit. While it takes time, these steps, combined with responsible financial habits, will gradually rebuild your credit score.

Is it better to focus on paying off my debts or saving money?

Generally, it’s important to strike a balance between the two. Paying off high-interest debts, like credit cards, should typically be a priority because the interest can quickly outweigh the benefits of saving. However, you should aim to maintain a small emergency fund – typically three to six months’ worth of expenses – to cover unexpected costs. This way, you won’t need to rely on credit if an emergency arises.

Once high-interest debts are under control, you can shift more focus towards building your savings while continuing to pay any remaining debts.

What should I do if I can’t keep up with my mortgage or rent payments?

If you find yourself in a position where you’re unable to keep up with your mortgage or rent payments, it’s important to contact your lender or landlord immediately to discuss your situation – they may offer temporary relief. You can also speak to debt advice experts at MoneyPlus to explore options such as payment restructuring or applying for benefits like Universal Credit. Acting quickly is essential to avoid more serious consequences like repossession or eviction.